MRF to raise funds

The Board Directors of MRF Limited approved to raise funds by issuing Non-convertible Debentures on private placement basis, aggregating to approximately Rs. 102 crores in one or more tranches.

MRF also announced its financial results for the quarter ended September, 2019. On a consolidated basis, the net sales came in at Rs. 4,007.63 crores for Q2FY20, which is an increase OF 1.54 per cent from Rs. 3,946.77 crores in Q2FY19. In its profit before tax, the company reported a drop by 16.28 per cent to Rs. 342.31 crores in Q2FY20 from Rs. 408.90 crores in Q2FY19. Subsequently, the company’s net profit for Q2FY20 declined by 17.72 per cent and was Rs. 228.96 crores compared to Rs. 278.29 crores in Q2FY19.

As for the half year ended September 2019, even as net sales increased by 8.28 per cent to Rs. 8,478.45 crores for H1FY20 from Rs. 7,829.76 crores in H1FY19, PBT reduced by 6.48 per cent to Rs. 760.12 crores in the period under review from Rs. 812.84 crores in the first half of the last fiscal. Hence, the net profit gained in H1FY20 decreased by 7.99 to Rs. 502.23 crores from Rs. 545.85 crores gained in H1FY19.

The company also declared an interim dividend of Rs. 3 per equity share for the financial year ending March 31, 2020. MRF Limited fixed November 22,2019 as the record date for the purpose of payment of the interim dividend, which will be paid on or after November 29,2019.

On Friday, the stock of the company closed at Rs. 64,422, up by 1.49 per cent or Rs. 948.20 per share. The 52-week high is Rs. 69,883.55 and 52-week low is Rs. 51,850 on BSE.